| dc.description.abstract | The goal of the paper is to examine the factors that affect the small and medium enterprises (SMEs) to occur default events. To find the factors that may affect the overdue loan, the paper analysis two cases of the bank L. Moreover, the paper take SMEs apply for credit guarantee fund from 2012 to 2013 as a sample, selecting nine of variables: the number of years of establishment, debt ratio, business finance ratio, amount of capital, number of employees, gender of the owner, sales revenue, credit guarantee ratio and amount of credit guarantee to perform empirical research identifying factors that significantly affect the default of SMEs.
The case study found that the rapid growth of borrower and the substantial changes in financing quotas in the short term should be thoroughly understood and carefully evaluated to reduce credit risk. The empirical results show that through T-test and logistic regression analysis, it can be found that there′re four variables, such as the number of years of establishment, the number of employees, the credit guarantee ratio and the amount of credit guarantee, are negatively related to the probability of default and consistent with the case results. However, the amount of capital and sales revenue are positively related to the probability of default, which means it should be reviewed if large enterprises with high turnover are really means good enterprises. | en_US |